Grayscale Allocates 30.6% to BNB in Smart Contract Fund, Surpassing Ethereum and Solana

Grayscale Investments completed its second-quarter portfolio rebalancing on August 3, 2026, adding BNB to its Smart Contract Fund for the first time. BNB secured a dominant 30.6% weighting, leapfrogging Ether (29.47%) and Solana (29.15%) to become the fund's largest holding. Grayscale funded the purchase by trimming existing positions, including Cardano. The firm also adjusted its DeFi and Decentralized AI funds, reducing exposure to Uniswap and NEAR Protocol while maintaining both as their respective funds' top assets.

BNB tops Smart Contract Fund

• ▪Grayscale Investments added BNB to its Smart Contract Fund for the first time during its second-quarter rebalancing completed on August 3, 2026, giving the token a 30.6% weighting.
• ▪Following the August 3, 2026 rebalancing, BNB became the largest holding in the Grayscale Smart Contract Fund, surpassing Ether at 29.47% and Solana at 29.15%.

Grayscale Q2 portfolio rebalancing

• ▪Grayscale Investments funded the addition of BNB to its Smart Contract Fund by selling portions of the fund's existing holdings, including Cardano.
• ▪Following the second-quarter 2026 rebalancing, the remaining allocations in the Grayscale Smart Contract Fund were distributed among Cardano at 4.88%, Hedera at 2.08%, Avalanche at 1.92%, and Sui at 1.90%.

BNB Chain institutional adoption

• ▪Market data indicates that the BNB Chain recently recorded more than $80 million in tokenized ETF-related growth, strengthening its position among institutional investors.
• ▪The addition of BNB to the Grayscale Smart Contract Fund is viewed by analysts as a sign of growing institutional interest in the BNB Chain ecosystem and its long-term potential.

Uniswap DeFi Fund reduction

• ▪Grayscale Investments reduced its Uniswap exposure in its DeFi Fund during the second-quarter 2026 review, though Uniswap remained the largest holding at 34.16%.
• ▪Following the second-quarter 2026 rebalance, the Grayscale DeFi Fund allocated 25.44% to Ondo Finance, 19.97% to Aave, 12.19% to Ethena, 4.42% to Curve DAO, and 3.82% to Lido DAO.

NEAR Protocol allocation decrease

• ▪Grayscale Investments reduced its exposure to NEAR Protocol in its Decentralized AI Fund, though NEAR Protocol remained the largest holding at 31.35%.
• ▪Following the second-quarter 2026 rebalance, the Grayscale Decentralized AI Fund increased its allocation of Bittensor to 29%, followed by Render at 21.59% and Filecoin at 17.91%.

Layer-1 competitive positioning

• ▪Grayscale Investments noted that its DeFi and Smart Contract funds do not generate income and periodically sell portions of their holdings to cover operating expenses, which can decline the amount of crypto represented by each share over time.
• ▪By elevating BNB above Ethereum and Solana, Grayscale is endorsing a bet that chains with deep exchange integrations, a mature DeFi landscape, and aggressive fee-burn mechanics can attract institutional interest despite centralized genesis concerns.